As we’ve seen this week, when organised crime loses its figurehead, the violence is immediate and visceral. But while a cartel boss can be eliminated in a single operation, the illegal funds that sustained the criminal enterprise do not simply vanish. The harder job is dismantling the illicit financial framework that propped up the criminal enterprise and enabled it to thrive.
When Mexican security forces killed Nemesio “El Mencho” Oseguera Cervantes on 22 February 2026 in Tapalpa, Jalisco, the shockwave was violently felt across the country. As the longtime head of the Jalisco New Generation Cartel (CJNG), he had built one of the most aggressive and globally connected trafficking networks in the Americas. Within hours of his death, armed groups erected roadblocks, set vehicles and commercial properties ablaze, and paralysed transport in multiple states. Banks were torched in Jalisco. Flights were disrupted. Schools closed. Hotels were told to keep guests inside.
The financial machinery beneath the violence
The violence dominated the headlines but there are other ripple effects that emerge more quietly, through bank transfers, corporate filings, property transactions and cross-border trade flows. The violence is the visible shockwave but the financial machinery that propped up the cartel remains in play.
Under Oseguera’s leadership, CJNG evolved from a regional criminal group into a diversified enterprise generating billions in revenue from cocaine, methamphetamine and fentanyl trafficking into the US. It expanded into fuel theft, migrant smuggling and financial fraud. It embedded itself across over 20 Mexican states and forged links deep into supply and transit routes in Colombia and Ecuador. That kind of scale requires a sophisticated money laundering infrastructure.
How do cartels of this size recycle their cash? They create shell companies. They acquire real estate through layered corporate vehicles. They disguise cash movement through structured trade transactions. Their funds will cross borders in ways designed to appear commercially routine. Lawyers, accountants, even company formation agents could unwittingly or wittingly become involved at different points in the process.
What’s important here is that leadership disruption does not eliminate this infrastructure. In fact, it could accelerate its use.
Succession and capital flight
What happens is senior figures in the cartel want to secure their personal funds before assets might be frozen. Also, factions start competing for control and attempt to consolidate revenue streams. Then splinter groups may divert funds into new ventures. Some analysts think that CJNG faces a contested succession, mostly because so many of the family members are in jail and a clear heir does not appear to have been designated. This could intensify the financial repositioning.
For businesses operating in sectors exposed to cross-border capital flows, this matters.
The US designated CJNG as a foreign terrorist organization in 2025, significantly increasing sanctions and material support risk. Oseguera was one of Washington’s most wanted figures. US–Mexico cooperation on security has grown and there’s been increased political pressure around cross-border trafficking, and that enforcement attention is not going away with his death. If anything, it could increase.
Financial institutions should be aware that this could mean more scrutiny of Mexico-linked transactions and beneficial ownership structures. Similarly, real estate professionals, especially those in high-growth and tourist markets, should maintain their vigilance around all-cash purchases, opaque corporate buyers and rapid asset flipping. Trade-based businesses should keep an eye on the integrity of their invoices and make sure they verify who they’re doing business with and flag unusual shipment patterns. Law firms and corporate service providers will want to resist the temptation to rush through complex restructurings without fully understanding who ultimately benefits.
It’s important to be aware that funds could be shifted into jurisdictions that are perceived as less aggressive in enforcement. Ownership structures may be rearranged. Long-dormant entities may suddenly become active.
Heightened vigilance
The risk here is real. And all of this activity can appear, at least on the surface, entirely legitimate.
This should put compliance teams on alert. Review your risk assessments, make sure the firm’s beneficial ownership data is current and verified, and flag high-risk geographic exposure for enhanced due diligence. Reinforce internal reporting channels so that all staff understand what escalation looks like in practice. Also , brief your boards on areas of exposure so everyone is prepared.
It is tempting to view this recent spate of cartel violence as a security issue that’s not relevant to your company located in another country. But the financial network is transnational. CJNG’s network touched supply chains, markets and financial systems everywhere from South America to North America, and beyond. Its destabilisation won’t occur in isolation. It will echo through the many channels that it used to move its money.
Ultimately, El Mencho’s death could weaken CJNG. Or it may trigger additional targeted operations by Mexican authorities. But criminal organisations don’t just vanish after a single operation. Likely, it will try to adapt and restructure – and move its money.
While the public watches the cars burning, compliance teams should be watching the money flows.
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